DQ-WEEK7-535 Explain departmental income statement and the criterion for division of indirect costs among departments. Provide an example from your own business experience or a hypothetical example in...

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DQ-WEEK7-535 Explain departmental income statement and the criterion for division of indirect costs among departments. Provide an example from your own business experience or a hypothetical example in which at least three (3) indirect costs are divided among departments. APA FORMAT ,1 page! Additional information about APA format APA Reference: APA Citation-machine website: https://www.citationmachine.net/apa/cite-a-website APA Citing in-text https://research.moreheadstate.edu/c.php?g=107001&p=695202
Answered Same DayApr 14, 2022

Answer To: DQ-WEEK7-535 Explain departmental income statement and the criterion for division of indirect costs...

Nitish Lath answered on Apr 15 2022
82 Votes
A departmental income statement shows the operating and financial performance of an individual department or group of departments. The income statement shows that which is the department is profitable or which department is loss making and accordingly the performance of each department is assessed based on department income statement by the management for decision- making purposes. The indirect cost is the cost which is not related to directly related to a specific department and the indirect cost can be allocated based on various methods to each department such as proportional allocation method, fixed cost classification and ABC cost allocation method. The ABC cost method is the best method for indirect cost allocation among the...
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